The Costs of Flood Damage
- FloodPrice
- Aug 3, 2020
- 2 min read
Updated: May 14
According to statistics from NOAA’s National Centers for Environmental Information regarding billion-dollar weather and climate related events from 2019-2020, flooding was one of the most devastating types of weather event. Flood events have cost Americans more than $3.7 billion per year over the past 20 years. A flood can cost a homeowner thousands of dollars.
Average Flood Damage Costs
FEMA provides detailed estimates of potential flood losses based on the size of a home, its contents, and the depth of flooding. For a 2,500-square-foot, one-story home with possessions worth $50,000, the estimated losses are as follows:floodsmart.gov.
Flood Depth | Structural Damage | Personal Property Loss | Total Estimated Loss |
1 inch | $23,635 | $3,172 | $26,807 |
5 inches | $31,425 | $13,914 | $45,339 |
48 inches | $53,355 | $50,000 | $103,355 |
Similarly, for a larger 5,000-square-foot, multi-story home with $100,000 in possessions:
Flood Depth | Structural Damage | Personal Property Loss | Total Estimated Loss |
1 inch | $47,110 | $6,344 | $53,454 |
5 inches | $62,500 | $27,996 | $90,496 |
48 inches | $103,280 | $100,000 | $203,280 |
These estimates highlight how even minimal flooding can result in substantial financial losses. For more detailed information, you can refer to FEMA's Estimated Flood Loss Potential chart.
Despite these alarming numbers, only a small percentage of Americans have flood insurance – according to a 2018 Insurance Information Institute survey only 15 percent of homeowners carry flood insurance policies. Many homeowners do not believe they are at risk of flooding or mistakenly believe they have flood insurance coverage through their homeowners’ policies. Still, others think federal disaster aid will always assist them if their property should be flooded.
Unfortunately, outdated flood maps are giving some a false sense of security, and that prevents many businesses and homeowners from taking the time to understand the true cost of flooding. Most federal disaster assistance comes in the form of low-interest loans rather than grants, and recent disaster payouts after Hurricane Harvey averaged only $4,300, according to POLITICO.
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